Senior Housing Finance Activity: Ziegler, Greystone

Greystone Provides $58 Million Refinancing Loan for California Community

Greystone, a real estate investment, lending and advisory company, has provided a $58,340,000 Freddie Mac loan to refinance Varenna at Fountaingrove in Santa Rosa, California.

The facility is owned and operated by affiliates of Oakmont Senior Living and offers gourmet dining, concierge services, activity rooms, a salon and day spa services, a private theater, walking paths, gardens and a wellness center with 163 independent living units.


The refinance loan has a 10-year team, funded via Freddie Mac’s Index Lock product, enabling the borrower to take advantage of the existing 10-Year Treasury rate prior to commitment. This the second Freddie Mac capital markets execution Greystone has provided for Oakmont Senior Living. Greystone has previously funded a separate $150 million Freddie Mac Credit Revolver for Oakmont.

“As one of our marquis assets, Varenna now benefits from 10-year financing at an attractive rate, and we’re thrilled that the Freddie Mac Index Lock product was executed flawlessly by Greystone, virtually eliminating any rate risk during the processing of the transaction,” Oakmont Senior Living CFO Joe Lin said in a statement.

Ziegler Secures $20.9 Financing for The Arlington of Naples


Ziegler, a specialty investment bank, closed $20,925,000 in unrated tax-exempt fixed-rate Series 2015 A&B Bonds for The Arlington of Naples, a continuing care retirement community. 

The Arlington will offer 128 independent living apartments, 47 independent livings villas, 42 assisted living apartments, 37 memory care support suites and 44 skilled nursing suites. The community, including common areas and parking structures, will be approximately 617,000 square feet.

The Arlington of Naples is sponsored by Lutheran Life Ministries, which owns five communities consisting of 1,279 existing units across Illinois and Indiana. The Arlington of Naples was incorporated in 2008 with the aim to develop, own and operate a not-for-profit Type B CCRC on 39 acres in Lely Resort in Naples, Florida. Lely Resort is a 3,000-acre luxury real estate community with eight neighborhoods and three golf courses. Residents of The Arlington may join any club within the Lely Resort.

The Series 2015 A&B Bonds were issued at the same time of the closing of an $8 million construction loan from the Mission Investment Fund of the Evangelical Lutheran Church in America. The two financings will be used to construct 16 additional independent living villas and complete the project as originally envisioned at the time of the $190,295,000 Series 2013 Bond issuance. Lutheran Life Ministries is providing $11 million in a Liquidity Support Agreement, $7 million that was held with the trustee from the Series 2013 funding. 

“Ziegler was pleased to work side-by-side with management to complete this complex transaction,” Steve Johnson, a managing director in Ziegler’s senior living practice, said in a statement.

The Arlington is currently under construction and its estimated opening is October 2015. The Arlington has already presold 85% of its independent living units as of June 10, according to a statement.

Lancaster Pollard’s Propero Provides $26.7 Million Development Capital for Senior Housing Facility

Propero Seniors Housing Equity Fund, Lancaster Pollard’s proprietary private equity program, partnered with a joint venture consisting of Paradigm Senior Living, the land owners and passive individual investors for the development of Woodhaven Village, a new seniors housing and care facility to be located in Conroe, Texas.

Propero is the sole owner of the project and invest approximately $26.7 million to fund its development. The Woodhaven joint venture selected Propero to fund the project to minimize capital commitment, according to a statement.

The partnership includes a predetermined purchase option schedule with prices based on propellor’s investment basis rather than the current fair market value, providing the joint venture tenant the opportunity to acquire the asset at those predetermined prices shortly after contraction completion. 

“We have been working on the Woodhaven development for almost two years and we appreciate the input, resources and industry expertise that the Propero team brought to the table,” Lee Cory, president of Paradigm Senior Living, said in a statement. “We couldn’t be more pleased to be partnering with them on this development.”

Construction is already underway and the entire facility is expected be completed in late 2016.

Ziegler Closes $42.585 Million Financing for Salemtowne

Specialty investment bank Ziegler has closed $42,585,000 in financing for its new client Salemtowne, a charitable not-for-profit corporation based in North Carolina.

The loan was financed through tax-exempt, fixed-rate Series 2015 Bonds. Salemtowne currently owns and operates one CCRC in Winston-Salem, North Carolina, where the financing will be used to replace existing facilities and expand buildings, fund a debt service reserve fund and pay a portion of the interest accruing on the bond and certain fees and expenses.

“It has been a pleasure working with Salemtowne on the Series 2015 transaction,” Tommy Brewer, managing director in Ziegler’s senior living practice, said in a statement. “Salemtowne provides a wonderful lifestyle on a beautiful campus, and the new nursing facility will enable the community to continue to grow and prosper for many years to come.”

The bonds have an aggregate yield to maturity 5.406% and a 30-year final maturity. Davenport & Company, LLC was a 15% co-manager on the transaction, and PFM served as financial advisor. 

The property was opened in 1972 and currently holds 171 independent living units, including 98 apartments and 73 cottages; 46 assisted living beds; and 84 skilled nursing beds with 18 committed for memory support.

Salemtowne plans to use the funds in Phase I to construct and equip a new skilled nursing facility that will contain 100 skilled nursing beds—of which 40 will be dedicated to rehabilitation—and 20 assisted living memory care beds. Salemtowne expects the building to be approximately 126,78 square feet. Approximately 14,950 square feet is designated for assisted living memory care beds. 

Love Funding Closes $14.3 Million Loan for Senior Apartment Rehabilitation

Love Funding, one of the nation’s leading providers of FHA, multifamily, affordable and healthcare financing, closed a $14.3 million loan to rehabilitate a senior aparment complex in Sparkhill, New York. The property is owned and managed by a non-profit organization run by the Dominican Sisters of Sparkhill.

The complex, Thorpe Village, was originally built in 1981 and consists of 200 age-restricted units, of which 198 are covered by Section 8 contracts by the Department of Housing and Urban Development. The rehabilitation plans include new windows, improving insulation, new kitchen flooring, cabinetry, appliance and energy-efficient boilers and water heaters, according to a statement.

Written by Amy Baxter 

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